A 50% stake in the commercial center and hotel complex Kumho Asiana Plaza Saigon in HCMC will be acquired by Asiana Airlines, said Won Il Woo, president and CEO of Kumho Engineering & Construction.

“This is an internal deal within Kumho as it is being made between its two subsidiaries, Asiana Airlines and Kumho Engineering & Construction,” he said at a meeting with HCMC vice chairman Le Manh Ha on Thursday.

He asked about the necessary procedures under Vietnamese law for this deal. “We don’t know if we have to report to the central agencies in Hanoi, or if reporting to HCMC is enough,” he wondered.

In response, Vice Chairman Ha said the municipal government would review the project document next week and then give appropriate guidelines.

“Normally, the authorities that license a project will handle changes in that project. However, when it comes to real estate, there are complicated regulations, so a careful review is needed,” Ha explained.

At the end of the meeting, Won said the chairman of Kumho would visit Vietnam next week. “He will meet HCMC leaders and directly mention this deal,” he said.

The US$225 million Kumho Asiana Plaza Saigon project was completed in October 2009. Located at 39 Le Duan Boulevard, District 1, it consists of a 21-story hotel of five-star standards with 300 guest rooms and three 32-story office and apartment buildings.

Kumho Asiana Plaza Saigon is a venture between South Korea’s Kumho Engineering & Construction with a 65% stake, and two local partners – Saigontourist and HDSC – with a combined 35% stake.

The Saigon Times Daily